Mr. Chairman, Fellow Governors, Mr. President, Directors and Officers of the Bank, Observers, Guests, Distinguished Ladies and Gentlemen:

On behalf of the Minister of Finance and the Economy, Dr. the Honourable Errol Cort, and on behalf of the Government and People of Antigua and Barbuda, I express my deep appreciation to the Government and People of Guyana, for the warm hospitality which they have demonstrated during the hosting of this Thirty-Fifth Annual Meeting of the Board of Governors of the Caribbean Development Bank(CDB). I am indeed heartened by the cooperative spirit, hard work and dedication that has made this occasion a success.

Permit me also, Mr. Chairman, to convey apologies from the substantive Governor, Minister of Finance Dr. the Honourable Errol Cort, whose absence could not be avoided. He is, nonetheless, confident that the discussions and outcomes will be consistent with the Bank's mission and policies in respect of the continued development of its Borrowing Member Countries and the sub-region.

I, too, would wish to join with the Minister and Fellow Governors and thank the Staff of CDB for their efficiency, hard work and professional competence which has guided the policy and programme outputs of Governments within the Region, and which has culminated in the smooth conduct of these proceedings.

Antigua and Barbuda, Mr. Chairman, like other small, open, developing economies continues to be affected by developments within the external environment, both positive and negative. In this regard, Antigua and Barbuda's service based economy continues to be constrained by the persistent rise in oil prices. Should this trend continue the likely impact on consumer prices for the oil importing economies of the OECS will be significant, given our narrow economic base and limited capacity. In a nutshell, we continue to struggle in a world where our development prospects are made more complicated by our vulnerability to global price movements that inflate the cost of conducting business and contribute to the deterioration of our balance of trade.

It is within this context of global volatility, Mr. Chairman, that Antigua and Barbuda returned to a more desirable rate of growth of 5.2% in 2004, which was driven by positive performances in the tourism, transportation and utility sectors. Our economic prospects, however, continue to be constrained by problems of fiscal management, as tight fiscal conditions allow little room for manoeuvre. The Government of Antigua and Barbuda has therefore committed itself to a programme of fiscal reform designed to correct the chronic state of fiscal imbalance.

This programme includes, but is not limited to, a reduction of 20% over last year of the aggregate outlay on public sector salaries and wages; curtailment of tax and duty concessions; and the rationalization and reform of the tax system for the more effective administration and collection of tax revenues. In this regard, the Government of Antigua and Barbuda reintroduced Personal Income Tax as of April 1, 2005, drawn from personal incomes over $3,000 per month. All revenue from Personal Income Tax will go into a Special Fund, a Stabilisation Fund, for the reconstruction and renewal of the nation.

We also propose to introduce in the near future a General Sales Tax and we are in the final stages of remodelling our Property Taxation System.

Management of the Public Debt is of course critical to our fiscal restructuring and reform programme. Antigua and Barbuda has instituted comprehensive debt management policies which have led to the rescheduling and forgiveness of some of our debt obligations. In this regard, the Italian Government recently forgave USD167 mn of Antigua and Barbuda's debt.

Growing our Economy, active economic stimulation and diversification must parallel fiscal reform. The Government of Antigua and Barbuda is close to establishing the Antigua and Barbuda Investment Authority which will serve as a one-stop shop for investors and will function as an investment, facilitation and promotion agency.

Mr. Chairman, I am pleased to advise that our offshore gaming sector is set to rebound as the Government of Antigua and Barbuda has been successful in its legal action against the United States of America at the World Trade Organisation (WTO). A WTO panel convened in 2004 and ruled that the USA had violated commitments made under the General Agreement on Trade in Services (GATS) by prohibiting the supply of gambling and betting services. The USA subsequently filed an appeal. That appeal was heard in early 2005. The WTO has again ruled substantially in favour of Antigua and Barbuda. Indeed, our Minister of Finance, Dr. the Honourable Errol Cort, is presently in Geneva seeking to work out modalities with the USA to give effect to the WTO ruling.

Mr. Chairman, I turn briefly to the performance of the Bank. Antigua and Barbuda notes with commendation the Bank's continued contribution to the harmonized development of the region, in particular, the contribution of the CDB towards the establishment of the Caribbean Court of Justice. The Bank raised USD100mn on the international capital markets and disbursed the funds to a Trust to enable the permanent financing of the operations of the Court, thus ensuring its independence.

Antigua and Barbuda notes the continued assistance to the Less Developed Countries (LDCs) by CDB. Gross Loan Approvals in 2004 were USD113.3 mn. Approvals to the LDCs were 66% of this amount or USD74.3 mn. As further reported, of the USD6.6 mn in grant funds disbursed in 2004, USD4.9 mn or 74% was to the LDCs. The LDCs continue to get the larger share of funds disbursed to date, receiving in 2004, 56% of all disbursements (loans and grants) and 67% of all concessionary funds disbursed out of CDB's Special Funds Resources. This level of assistance to the LDCs is commendable.

Antigua and Barbuda congratulates CDB on its reported Net Income for the year of USD19.4 mn. It is clear that the Bank's continued positive performance reflects the professionalism and prudence of its Management.

Mr. Chairman before concluding, Antigua and Barbuda wishes to indicate its support for CDB's proposal in respect of the replenishment of Special Development Fund (SDF) V1. While we acknowledge that the proposed programming level is ambitious, and also that Contributors' budgets are constrained, we would wish for serious consideration to be given to a significant replenishment commitment by Contributors.

In this regard, Antigua and Barbuda commits itself to meeting its obligations in respect of SDF V1, when such commitments are determined, and encourages Contributors to be as generous as they have been in the past, so as to permit CDB to fulfil its mission.

I would like to take this opportunity, Mr. Chairman, to thank and commend CDB for the good will and technical guidance it has provided and for the patience it has exercised over the past year as Antigua and Barbuda's stringent fiscal position was such that it adversely affected our commitments to the Bank. We remain confident that, with the assistance of the CDB and other Regional institutions, we can marshal the financial resources to honor in a timelier manner, these commitments.

In concluding, I wish to congratulate the President, his management team and Members of Staff for their support and superior effort in the fiscal year 2004. Moreover, I applaud their innovation and commitment in assisting the Borrowing Member Countries.

Thank you.